The South Dakota bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses. If you reward team members with bonuses for a job well done, you may find our South Dakota bonus tax calculator worth a closer look.
Behind the numbers
Behind the numbers
Updated: July 12, 2025
Does South Dakota tax bonuses?
No. South Dakota doesn’t have a state income tax, so bonuses aren’t subject to state withholding.
How to calculate bonus tax in South Dakota
You can keep this simple! Just apply the federal flat rate of 22%. No state tax is withheld. Use the calculator at the top of this page to run the numbers,
What is the bonus tax rate in South Dakota?
22% federal only. South Dakota doesn’t have a personal income tax.
How can employers in South Dakota pay bonuses to employees?
Bonuses in South Dakota can be paid via:
- Check
- Direct deposit
- Pay card
How do bonuses work in South Dakota?
Bonuses are treated like regular pay for federal purposes, reported on Form W-2, and subject to federal (but not state) withholding.
Why are bonuses taxed differently than standard pay?
They aren’t — at least not by the state of South Dakota. But Uncle Sam still wants his share: The IRS treats bonuses as “supplemental wages” and usually withholds a flat 22% if they’re paid separately from regular pay.
How much tax is taken out of a bonus in South Dakota?
Only federal tax applies. For example, a $6,000 bonus would mean $1,320 withheld for federal taxes — and nothing withheld for South Dakota.
Resources for South Dakota employers
Department of Labor and Regulation